On 20th Sept we published our analysis on AUS200 along with a buy signal at 7112.300, stop loss 7020.084 and take profit at 7470.30. Fortunately the Australian market travelled precisely in accordance to our bullish anticipation with a bullish move towards 7418, missing our targeted destination by a few pips while followed by a bearish reversal because the indice failed to break above the weekly price action resistance 7400 and exponential moving average 50 in daily time frame. From the current market scenario we can observe that AUS200 is struggling with our high supply demand zone 7173 - in order to break below the exponential moving average 200 in daily time frame and 61.8% fibo retracement zone at 7094. In fact, the key USD Index shot to the 94.00 neighbourhood, or the highest level since November 2020 and was supported by a combination of factors. The intensifying energy crisis in China resurfaced fears of a global economic slowdown, which, in turn, benefitted the greenback's status as the global reserve currency.

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

We are more in favor of a bullish continuation of trend from the current market price if AUS200 provided us with a strong bullish closing above the supply demand zone 7173 - 7094. Also according to the elliot wave pattern AUS200 has completed its bearish correction of higher degree on the interday and daily time frames, indicating that a strong bullish reversal would be considered as a continuation of the bullish trend. On the bearish side AUS200 needs to create an impulsive dovish move below the 61.8% fibo level and exponential moving average 200 on the daily chart which would drive the indice towards 6928 (50% fibo level) and 6762 (38.2% fibo level). 

AUS200

Sep 29 2021